Describe the accounting treatment of contingencies and provisions under IAS $37$ or ASC $450.$ Discuss the criteria for recognizing and measuring provisions and the disclosure requirements for contingencies.

Contingencies and provisions relate to potential obligations that may arise from past events. Explain the accounting treatment under IAS $37$ or ASC $450,$ including the recognition criteria for provisions $($e$.$g$.,$ when there is a present obligation, it is probable that an outflow of resources will be required, and the amount can be reliably estimated$).$ Discuss the measurement of provisions based on the best estimate of the expenditure required to settle the obligation. Describe the disclosure requirements for contingencies, including information about the nature, timing, and amount of potential liabilities.